Target Corp. raised its 2026 sales and earnings outlook after stronger-than-expected second-quarter results, with higher traffic, digital growth, broad category improvement and a $994 million pretax tariff refund supporting profit. Net sales rose 5.3% year over year to $26.54 billion, above the $26.141 billion analyst estimate, while comparable sales increased 3.8% on 3.6% higher traffic. Store comparable sales rose 2.7%, digital comparable sales climbed 8.7% and same-day delivery sales grew more than 25%. GAAP diluted EPS doubled to $4.11 from $2.05, while adjusted EPS excluding tariff-refund benefits was $2.46, above the $2.33 estimate. Target raised its 2026 net-sales growth outlook to about 5%, sales guidance to $110.019 billion from $108.971 billion and GAAP and adjusted EPS guidance to $9.90-$10.90 from $7.50-$8.50. Food and beverage sales grew 7%, their fastest increase in three years, as new CEO Michael Fiddelke seeks to make grocery a stronger traffic driver after the company started 2025 with a 3.8% comparable-sales decline. Target plans to add about 600 private-label food and beverage products over two years, including 400 under Good & Gather, with the initiatives expected to generate more than $2 billion in growth over the next few years. In March, Fiddelke unveiled a $6 billion plan to reverse Target’s sales slump and reclaim the retailer’s reputation for affordable yet stylish apparel and home goods. The company recruited fashion designer Isaac Mizrahi as creative director, expanded private-label offerings and plans to roll out a new Target Beauty Studio concept in more than 600 locations next month, partly replacing Ulta. On the earnings call, executives used "encouraged" or "encouraging" 20 times, nearly matching 21 mentions on the first-quarter call and exceeding the nine uses across calls covering the first half of last year.